Gold logs weekly loss of Rs 1,000; silver hits 27-month low

Gold logs weekly loss of Rs 1,000; silver hits 27-month low New Delhi: Silver plunging to over 27-month low at Rs 43,700 per kg and gold to one-month low at Rs 26,700 per ten gram was the feature of trading in the bullion market during the past week on heavy stockists selling on weak global trend.

Silver dropped by Rs 2,100 to Rs 43.700 per kg, a level last seen on February 3, 2011, while gold lost Rs 1,000 to Rs 26,700 per ten grams, matching with a level on April 17, this year.

Traders said selling pressure gathered momentum after gold fell in overseas markets, as the dollar jumped to a 34-month high and a Federal Reserve policy maker said US monetary stimulus may be reduced within months.

Gold in New York, which normally set price trend on the domestic front, fell to one-month low of USD 1,364.70 an ounce.

They said investors shifting funds from weakening bullion to rising equity and retail customers refrained from making fresh purchased due to off marriage season, and expecting more correction in the prices also dampened the sentiment.

In the national capital, gold of 99.9 and 99.5 percent purity commenced lower and tumbled to settle Rs 1,000 lower each at Rs 26,700 and Rs 26,500 per ten grams on heavy selling driven by weakening global trend. Sovereign followed suit and lost Rs 200 at Rs 23,700 per piece of eight gram.

In line with a general weak trend, silver ready dropped by Rs 2100 to Rs 43,700 per kg and weekly-based delivery by Rs 2585 to Rs 42,655 per kg during this week.

However, silver coins moved between gains and losses on alternate bouts of trading and settled unchanged at Rs 75,000 for buying and Rs 76,000 for selling of 100 pieces.

PTI